Read Pastured Poultry Profits by Joel Saladin- it's a GREAT book and a very easy read. It will tell you everything you want to know. From what he writes, (and this varies by state,) you need to sell a lot before state regulations kick in- in the thousands. He also suggests that you should take pre-orders for and sell them as LIVE birds- then offer processing free of charge. That way, you are just selling chickens, not meat. Of course, most people will take you up on the free processing, but they COULD come get a live one if they wanted a terrible pet or a bird to process themselves. This will get you around many regulations. He also says that you shouldn't really ask any officials about regulations/inspections/etc. If, on the off chance a government official DOES find out you're selling chickens AND finds something you're doing wrong, he says that 99% of the time, you will either be told to stop, or told what you need to do to correct whatever the problem is. Get the book though- it will answer almost every question you could have.